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2023 (7) TMI 1275 - ITAT DELHIAssessment u/s 153A - disallowance of deduction u/s. 54F - A.O. did not satisfy with the details/documents furnished by the assessee and completed assessment proceedings u/s 143(3) by determining the total income of the assessee more as against the returned income of assessee - HELD THAT:- Since in the impugned assessment order u/s. 153A AO had not made any addition or disallowance and has impliedly accepted the earlier original assessment order u/s. 143(3) of the Act dated 26.12.2017, therefore the ld. CIT(A) rightly directed the Assessing Officer to adopt the income computed or assessed after appeal effect of the first appellate order dated 09.03.2020 in relation to said original scrutiny assessment order u/s. 143(3) of the Act dated 26.12.2017. Thus, the income after appeal effect in respect of original assessment order came to Rs. 18,38,28,500/- i.e. the income originally returned by the assessee in the return filed u/s.139(1) of the Act. It is pertinent to mention that the issue of disallowance of deduction u/s. 54F could have raised by the revenue only by way of filing appeal against the first order of ld. CIT(A) relating to original scrutiny assessment order dated 26.12.2017 and not in the present appeal, which has been filed against the subsequent order of ld. CIT(A), in the second appeal dated 22.06.2020 which was passed in the first appeal filed by the assessee against search assessment order dated 22.12.2019 passed u/s. 153A r.w.s. 143(3) of the Act. As neither the Assessing Officer has examined the issue of deduction u/s. 54F of the Act nor has made any addition or disallowance either u/s. 54F of the Act or under any provision of the Act, in the said search assessment order. Since in the original scrutiny assessment order u/s. 143(3) of the Act has been quashed by the ld. CIT(A) by passing first order, consequently returned income of assessee as per return of income u/s. 139(1) was accepted by the Department as there was no appeal against the said order before the Tribunal. In the second round of search litigation the returned income of assessee in the subsequent return filed response to notice u/s. 153A of the Act, was enhanced and thus the returned income increased. CIT(A) ignored the subsequent suo motto addition made by the assessee in the subsequent return filed in response to notice u/s. 153A - Resultantly, the controversy took rest by the subsequent order of ld. CIT(A) wherein the Assessing Officer was directed to adopt taxable income as per appeal effect order of earlier first appellate order dated 09.03.2020 ignoring the enhancement of income by Rs. 28,760/- therefore the Assessing Officer directed to take note of said suo motto enchantment by the assessee and thus, the taxable income of assessee was to be enhanced by said amount. The grounds of revenue are partly allowed in the manner as mentioned hereinabove.
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